As at December 31, 2016 | As at December 31, 2015 | |
Land | 236 | 243 |
Buildings and construction | 19,061 | 18,465 |
Technical equipment | 19,604 | 17,774 |
Vehicles | 341 | 325 |
Other property, plant and equipment | 2,522 | 2,390 |
Construction in progress | 9,601 | 7,871 |
CARRYING AMOUNT OF PROPERTY, PLANT AND EQUIPMENT | 51,365 | 47,068 |
Changes in property, plant and equipment by type
Land | Buildings and construction | Technical equipment | Vehicles | Other property, plant and equipment | Construction in progress | Total | |||||
GROSS BOOK VALUE | |||||||||||
AS AT JANUARY 1, 2016 | 266 | 31,669 | 39,261 | 720 | 4,991 | 8,019 | 84,926 | ||||
Capital expenditures | - | - | - | - | - | 8,016 | 8,016 | ||||
Transfer from construction in progress | 16 | 2,003 | 3,546 | 59 | 476 | (6,100) | - | ||||
Liquidation, disposal | (1) | (119) | (640) | (17) | (7) | (1) | (785) | ||||
Other | (10) | (61) | (15) | (33) | (189) | 31 | (277) | ||||
AS AT DECEMBER 31, 2016 | 271 | 33,492 | 42,152 | 729 | 5,271 | 9,965 | 91,880 | ||||
ACCUMULATED DEPRIACIATION AND IMPAIRMENT LOSSES | |||||||||||
AS AT JANUARY 1, 2016 | 23 | 13,204 | 21,487 | 395 | 2,601 | 148 | 37,858 | ||||
Depreciation and net value of liquidation presented in costs by nature | 5 | 1,203 | 1,445 | 57 | 164 | 1 | 2,875 | ||||
Impairment allowances | 9 | 195 | 293 | 1 | 2 | 211 | 711 | ||||
Liquidation, disposal | - | (107) | (592) | (17) | (7) | - | (723) | ||||
Other | (2) | (64) | (85) | (48) | (11) | 4 | (206) | ||||
AS AT DECEMBER 31, 2016 | 35 | 14,431 | 22,548 | 388 | 2,749 | 364 | 40,515 | ||||
CARRYING AMOUNT AS AT DECEMBER 31, 2016 | 236 | 19,061 | 19,604 | 341 | 2,522 | 9,601 | 51,365 |
Land | Buildings and construction | Technical equipment | Vehicles | Other property, plant and equipment | Construction in progress | Total | |||||
GROSS BOOK VALUE | |||||||||||
AS AT JANUARY 1, 2015 | 293 | 29,865 | 36,457 | 658 | 4,198 | 4,800 | 76,271 | ||||
Capital expenditures | - | 1 | 7 | 3 | 2 | 9,205 | 9,218 | ||||
Transfer from construction in progress | 14 | 1,880 | 3,200 | 82 | 810 | (5,986) | - | ||||
Liquidation, disposal | (2) | (130) | (442) | (21) | (11) | (4) | (610) | ||||
Changes in the PGE Group | - | (2) | (1) | (1) | - | - | (4) | ||||
Other | (39) | 55 | 40 | (1) | (8) | 4 | 51 | ||||
AS AT DECEMBER 31, 2015 | 266 | 31,669 | 39,261 | 720 | 4,991 | 8,019 | 84,926 | ||||
ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES | |||||||||||
AS AT JANUARY 1, 2015 | 25 | 10,282 | 14,368 | 356 | 1,400 | 102 | 26,533 | ||||
Depreciation and net value of liquidation presented in costs by nature | 6 | 1,169 | 1,471 | 56 | 152 | 3 | 2,857 | ||||
Impairment allowances | - | 1,859 | 6,077 | 4 | 1,037 | 46 | 9,023 | ||||
Liquidation, disposal | (1) | (106) | (439) | (19) | (11) | (3) | (579) | ||||
Changes in the PGE Group | - | (1) | (1) | (1) | - | - | (3) | ||||
Other | (7) | 1 | 11 | (1) | 23 | - | 27 | ||||
AS AT DECEMBER 31, 2015 | 23 | 13,204 | 21,487 | 395 | 2,601 | 148 | 37,858 | ||||
CARRYING AMOUNT AS AT DECEMBER 31, 2016 | 243 | 18.465 | 17.774 | 325 | 2.390 | 7.871 | 47.068 |
Significant additions and disposals of property, plant and equipment
The most significant capital expenditures were incurred by the Conventional Generation segment (PLN 6,171 million), Distribution segment (PLN 1,696 million). The main investment projects were: construction of power units 5-6 at the Elektrownia Opole (Power Plant Opole) (PLN 3,467 million), reconstruction and refurbishment of power units 7-12 at the Elektrownia Bełchatów (Power Plant Bełchatów) (PLN 518 million), construction of power unit 11 at the Elektrownia Turów (PLN 498 million), construction of gas and steam unit at the Elektrociepłownia Gorzów (PLN 215 million), connection of new customers (PLN 572 million) and modernization and development of electric power networks, stations and lines (PLN 788 million) in the Distribution segment.
No significant property, plant and equipment sale transactions occurred during the reporting period.
Borrowing costs
During the year ended December 31, 2016 the PGE Group capitalized in the value of property, plant and equipment and construction in progress borrowings costs of approx. PLN 103 million (PLN 67 million in the comparative period).
Capitalization of stripping costs
In the current period, in accordance with the requirements of IFRIC 20, the Group capitalized expenditures regarding stripping costs in the production phase of PLN 447 million. At the same time, the Group recognized depreciation of capitalized stripping costs of PLN 73 million. Capitalized stripping costs are presented as "other property, plant and equipment".
Capitalization of changes in valuation of rehabilitation provision
The PGE Group recognizes in the property, plant and equipment changes in the value of rehabilitation provision assigned to stripping of overburden, provision for rehabilitation of post-construction grounds of wind farms and provision for liquidation of property, plant and equipment. As at December 31, 2016 net value of capitalized rehabilitation provision amounted to PLN 632 million (including PLN 543 million of the provision for rehabilitation of post-exploitation mining properties). In comparative period net value of capitalized rehabilitation provision amounted to PLN 900 million (including PLN 779 million of the provision for rehabilitation of post-exploitation mining properties). Capitalized rehabilitation provision is presented in: “land” and “other property, plant and equipment”.