[1] The power station would be located across the Nyagak River, in Rateng Village, Paidha Sub County, Okoro County, Zombo District, West Nile Sub-Region, Northern Region of Uganda.

This location is near the town of Paidha, close to the border with the Democratic Republic of the Congo (DRC), approximately 10 kilometres (6.2 mi) downstream of the existing Nyagak I Power Station.

[1] During the construction of the Nyagak I Power Station (2006 - 2012), it became clear that its 3.5 megawatt output was inadequate to meet the electricity needs of the West Nile sub-region.

In addition, the towns of Aruu and Mahagi in the DRC had expressed the desire to be supplied with electricity from neighboring Uganda.

[3] The power generated will be evacuated via the existing 33 kilovolt transmission power lines linking the towns of Paidha, Nebbi, Bondo, Okollo, and Arua, constructed at an estimated cost of US$15 million between 2006 and 2012 during the development of Nyagak I.