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The African Development Bank said on Monday that it has approved a $135 million loan to launch the second phase of an energy project in Kenya.

The Abidjan-based multilateral institution said the funding will be used to support the Kenya Last Mile Connectivity project, which aims to expand the distribution network of Kenya Power, the national electricity provider, to meet growing electricity demand.

Kenya’s per capita electricity consumption is projected to increase by 45 percent by the end of 2017 from the current 130-kilowatt hour per month, which is lower than the Sub-Saharan Africa average of 550kWh. Given this expected surge in electricity demand, the AfDB said Kenya Power needs to reinforce supply to electrified areas through least-cost technical solutions that offer a combination of increased capacity, improved reliability and better voltage control.

“The AfDB has been playing a leading role in financing and attracting financing for capital intensive energy-related infrastructure projects in the region,” said Alex Rugamba, AfDB’s Director of Energy, Environment, and Climate Change.

The Kenya Last Mile Connectivity project involves the extension of the low-voltage network from existing distribution transformers to reach households located within a 600-metre diameter. It will also pre-finance low-voltage lines extensions and connection costs, including meters, to potential customers.

Specifically, the second phase of the project entails the supply of distribution material to reach 300,000 new connections, which would translate to electricity access for about 1.5 million people among low-income groups and small businesses located near existing distribution transformers.

The second phase also includes the construction of low-voltage distribution lines, supervision and management, and capacity-building activities in targeted areas of expertise.

The two phases of the Kenya Last Mile Connectivity Project, which began in November 2014, is expected to cost about $900 million. The project is being financed by the AfDB, the Kenyan government, and the World Bank Group.

“[The AfDB] will continue to maintain this momentum by promoting the spirit of its New Deal on Energy for Africa to bring projects which extend the provision of basic infrastructure to those in rural areas, such as the Kenya Last Mile Connectivity project,” added the AfDB’s Director of Energy, Environment, and Climate Change.