16.2. Other liabilities

Operational Programme “Digital Poland”

The Group concluded agreements with the “Digital Poland” Project Centre for co-financing of investment projects under the Operational Programme “Digital Poland” (“the Programme”). The Programme aims to strengthen digital foundations for the national development including common access to high-speed Internet, effective and user- friendly public e-services and a continuously rising level of digital competences of the society. Under the second contest of the Programme, the Group was granted PLN 0.7 billion from the Programme funds for the development of the broadband telecommunications network.

In the 12 months ended 31 December 2020 and 2019, Orange Polska received PLN 177 million and PLN 136 million of investment grants under the Programme, respectively. In the 12 months ended 31 December 2020 and 2019, PLN 194 million and PLN 171 million was deducted from the cost of related assets as a result of the Programme and PLN 221 million and PLN 153 million, respectively, was paid to fixed assets suppliers.

Investment grants are presented separately within investing activities in the consolidated statement of cash flows. Received advances for investment grants are presented as cash and cash equivalents and other liabilities in the consolidated statement of financial position.

Grants might not be paid by the financing institution or once obtained might become repayable under certain circumstances resulting from not complying with conditions of the financing. The Group assesses that it is reasonably assured that grants corresponding to the scope of investments completed will be received and they will not become repayable.