When and where does $projectLocation get defined?

The "use lib" action is done at compile time, before statements like

  my $projectLocation = '/some/other/place';
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can be executed to set the variable.   You need to force your value to be defined during compilation.   Perhaps this might be more like what you were thinking?

BEGIN {
  my $projectLocation = '/some/other/place';
  use lib $projectLocation;
}
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But then this gets back to something like the starting question - where does the value for $projectLocation come from?   Ah, an environment variable.   So maybe

BEGIN {
  use lib $ENV{MYLIBRARYDIR};
  printf "in BEGIN:   '%s'\n", join("', '", @INC );
}
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will do what you want.

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