The application of Project Management (PM) tools and techniques in public sector is gradually becoming an important issue indeveloping economies, especially in a new development country like Latvia where projects of different size and structures are undertaken.The paper examined the application of the project management practice in public sector in Latvia. Public sector projectmanagement in Latvia become popular in recent years as there is different type of public funding sources available. The paperdescribes the public sector project management practice in Latvia. Study shows that public sector project maturity level is low andshould be improved. Research period covers the time period from January 2013 – March 2013.