The power station is located across the Nyagak River, in Nyapea Sub-county, Okoro County, Zombo District, in West Nile sub-region, Northern Region.

This location is approximately 97 kilometres (60 mi), by road, south of Arua, the largest town in the sub-region.

A 33 kilovolt powerline already exists between the towns of Nebbi and Paidha and is just a short distance away from the proposed powerhouse.

All the studies carried out before construction of the powerhouse indicated that potentially low environmental and social impacts would result from the implementation of the Nyagak Hydropower Project.

West Nile Rural Electrification Company (WENRECO), a subsidiary of Industrial Promotion Services, was selected to develop the power plant.

Under the revised terms of the contract, the government of Uganda took a 10 percent shareholding in the power station.