Project management is very relevant to establish project controlling system to ensure that the projects perform towards the success of the project objectives. Planning, monitoring and evaluation can help an organization extract relevant information from past and ongoing activities that can be used as the basis for project planning, performance monitoring and evaluation. Most of public organization doesn‟t have effective and efficient planning, monitoring and evaluation system to accomplish the project activities within the planned budget, scheduled time and required quality. The objective of the study was to assess the current practice of planning, monitoring, and evaluation of construction projects in ARWE and identify factors that affects/influence the implementation of project PM&E. The study employed a descriptive survey research design since it allows the researcher to gather information, summarize, present and interpret for the purpose of clarification. The study employed purposive sampling techniques with the help of Statistical Packages for Social Sciences (SPSS) version 26 and MS. The study sampled the target population of 125. The primary data were collected through questionnaire and interview from four selected ongoing projects and secondary data from literatures and project documents. The result shows that presence of good culture of disseminating PM&E findings, employees understanding on PM&E concepts, culture of institutional learning and knowledge sharing, less and inconsistent involvement of stakeholders, inadequate field visit in the project site, less attention of top management to PM&E, insufficient allocation of resources, difficulty using PM&E tools and methods, and lack of expertise are the main challenges that hamper proper implementation of PM&E in ARWE are assessed. Finally, to conduct effective project PM&E, this study recommends that it is important to providing training for employees to building their capacity, arrange organization through adequate staff, required & sufficient quantity and quality of resources, conduct a regular and appropriate field visit to collect detailed data/information, consistently involve stakeholders and develop appropriate tool and techniques to implement PM&E. Key words: Project, Planning, Monitoring, Evaluation, Construction project, Amhara Road Works Enterprise