The mall1 pwpose of this study was to make an assessment of the Challenges andrnProspects of Alternative Basic Education by International Non GovernmentalrnOrganizations in the Amhara and Oromia Regions of Ethiopia. The study employed arndescriptive survey method. Questionnaires, focus group discussion, key informantrndiscussion and consultation of secondary data sources were used for data collection. Bothrnrandom and purposive sampling was used to select sample respondents of the study atrndifferent levels. Regional, zonal and woreda Education offices of Amhara and Oromiarnregions , Country and project offices of sample INGOs and woreda administrations,rncapacity building and Finance offices were subjects of the study. Both qualitative andrnquantitative techniques were used for data analysis. Finally the study came up with thernfollowing major findings: ABE has improved access to basic education; quality ofrneducation was improved through improvements in the input side (textbook, training ofrnABE facilitators, community awareness raising, and capacity building at woreda levels);rnINGOs provided financial and teclmical support to woreda;, improved policyrnenvironment through advocacy; and the program was cost-effective for it used localrnresources available. However, its sustainability seems threatened by factors like lessrnflexibility of the program in practice, less effort of woredas on finding alternativernmechanisms of financing the program, relatively lower quality of education, high staffrntum over, and high student dropout rates. In conclusion, the ABE program by INGOsrnhas been contributing significantly towards achieving the MDG goals complementing thernformal education system through creating access opportunity, improving quality andrnenhancing local capacity. Given the low net emolment rate in primary education, there isrna need to enhance the cooperation further. There seems good policy framework whichrnshould be translated into practice through allocating adequate budget and other resources.rnOn the other hand the program faces challenges of poor quality mainly linked to therncapacity of teachers, limited institutional capacity related to human power, allocatingrnbudget, and using local resources. This demands further advocacy engagement with localrngovernments from the INGOs.