The project is located in Phungling Municipality, Phaktalung and Mikwa Khola Rural Municipalies in Taplejung District. Geographically the project area lies between longitude 87 ͦ 40' 01'' E to 87 ͦ  42' 40'' E and latitude 27 ͦ  23' 29'' N to 27 ͦ  25' 19'' N. Headworks of the Project is located at Phaktanglung R. M., Ward No. 01 (Right Bank) and Powerhouse at Mikwakhola R. M, Ward No. 02 (Right Bank) and Dewatered Zone at Phungling Municipality, Ward No. 9 & 10 (left bank)


The project area lies in the Higher Himalayan and Lesser Himalaya, which is characterized by highly rugged relief with extremely varied topography. The altitude varies from 740 m at Thumba Dovan to 3795 m at high peak of Pathivara.


The nearest road head for the Project site is Phungling, the district headquarters of Taplejung which is 235 km from the East-West highway point at Charali, Jhapa District. This road is also referred to as 'Mechi Highway' and is a double lane black-topped road. Both Headworks and Powerhouse sites are accessible from the district headquarters. There is also an airport at Suketar, about 4 km form Phunling, but the flights are not regular.

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