Senior politicians from around the world are gathering in Paris for a summit on Libya's future.
French President Nicolas Sarkozy and UK leader David Cameron are hosting the meeting, to be attended by officials from the US, Russia and China.Delegates from Libya's rebel government will also be there, and are expected to ask for help on security and democracy.
Meanwhile, rebel forces say they will give Gaddafi loyalists in the city of Sirte another week to surrender.
Tribal elders have been negotiating with rebels to avoid bloodshed in the city - the birthplace of fugitive ex-leader Col Muammar Gaddafi.
Rebel leaders had given a deadline of Saturday for loyalists to surrender, but local official Hasan Banai told the BBC that they would give the talks another week.
The BBC's Paul Wood near Ras Lanuf says the message has also been broadcast on local radio, but it remains to be seen whether rebel forces on the ground will be happy to wait for another week.
The rebels have still not captured Col Gaddafi, whose son Saif al-Islam again vowed a fight to the death in an audio message on Wednesday.
Meanwhile in Paris, world leaders are expected to try to hone plans for the transition to democracy, for reconstruction and issues such as enhancing the training of police.
The rebel National Transitional Council (NTC) is expected to press for a further unfreezing of assets, but its delegates will also stress that it does not want any lessening of Nato support as it tries to quell the remaining loyalist pockets.
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Britain and France, which pushed for the air campaign and headed up the Nato coalition, are eager to play a significant role in rebuilding Libya. So, too, is Libya's traditional economic partner in Europe - Italy.
Even representatives from Russia and China, who opposed Nato's air campaign, are turning up in Paris.
In due course, there may be a good deal of commercial jostling. Behind the scenes, it may already have begun. But for the moment the emphasis is upon a diplomatic common purpose.
Analysis
Libya, with its potential oil revenues and a relatively small population, is no basket case. It is going to need a lot of assistance to rebuild. But there are lots of willing players.Britain and France, which pushed for the air campaign and headed up the Nato coalition, are eager to play a significant role in rebuilding Libya. So, too, is Libya's traditional economic partner in Europe - Italy.
Even representatives from Russia and China, who opposed Nato's air campaign, are turning up in Paris.
In due course, there may be a good deal of commercial jostling. Behind the scenes, it may already have begun. But for the moment the emphasis is upon a diplomatic common purpose.
The EU announced on Thursday that it had lifted sanctions on 28 entities - including oil firms and port authorities - to help the NTC get the economy moving again. The decision will take effect on Friday.
About 60 countries are to attend the "Friends of Libya" forum in Paris on Thursday afternoon, along with UN Secretary-General Ban Ki-moon.The meeting comes on the 42nd anniversary of Col Gaddafi's emergence as the leader of the coup that overthrew King Idris.
Delegates will hear a report from the NTC on security, governance, reconstruction and the economy.
The most urgent need is the restoration of services such as fuel, electricity and water in key cities, along with food supplies and the payment of workers.
The US has said the credibility of the NTC will initially rest on addressing such issues.
On Wednesday, £140m in Libyan banknotes ($227m; 280m Libyan dinars) was flown by the British air force to the NTC stronghold of Benghazi, the first tranche of £950m that will be handed to Libya's Central Bank.
And on Thursday, France announced it had now received approval to release 1.5bn euros ($2.16bn) of Libyan assets to the NTC.
The NTC received a further diplomatic boost on Thursday when Russia formally recognised its authority.
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NTC: Diplomacy and finance
- Key countries yet to recognise NTC government: Algeria; Brazil; China; India; Iran; Kenya; Pakistan; Saudi Arabia; South Africa; Venezuela; Zimbabwe
- Assets released: US - $1.5bn; UK - $1.5bn in dinar bank notes; France - $2.16bn
- Major assets still frozen: Canada - $2.4bn; France - $11bn; Germany - $7bn; Italy - $8bn; UK - $19bn; US - $34bn
"Our country has established and continued diplomatic relations with Libya since 4 September 1955 without a break, no matter what government holds power in Tripoli," the foreign ministry said.
China, which has criticised the extent of the Nato-led air campaign in Libya and has been an enormous investor in the country, said it would send a vice-minister to the Paris meeting.It stopped short of recognising the NTC, although foreign ministry spokesman Ma Zhaoxu said Beijing accepted its "significant position and role".
South Africa has refused to attend the meeting in Paris.
President Jacob Zuma said he was "not happy" that the UN resolution authorising a no-fly zone "became the bombing cover for the other group to advance".
Algeria, which drew strong criticism from the NTC for giving sanctuary to four key members of the Gaddafi family this week, on Thursday said it was ready to recognise the NTC once a government had been formed and that it had never considered taking in Col Gaddafi.
Foreign Minister Mourad Medelci told Europe 1 radio: "The hypothesis that Mr Gaddafi could come knocking on our door was never considered."
'Attack the rats'
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William Hague: "An opportunity for the NTC to set out their own plans"
There have been conflicting messages from the Gaddafi family about its intentions.
Saif al-Islam said his father was fine and pledged victory for loyalist forces.
In an audio message on Syria-based al-Rai television, he said he was speaking from Tripoli's outskirts.
"The resistance continues and victory is near," he said. "We are going to die in our land. No-one is going to surrender.
"Attack the rats," he said, referring to the anti-Gaddafi forces.
Saif al-Islam also said that claims by his brother Saadi that he had the family's authority to negotiate with the NTC to end the fighting were false and had been coerced.
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The BBC's Jon Leyne said the RAF delivered pallets of bank notes into an airport in Benghazi
"If my surrender stops the spilling of blood, I am ready to give myself up tonight," he said.
"We don't mind. We are all Libyans," he said. "We have no problem to give them (the NTC) power."
The NTC has made it clear it is not interested in negotiating.
A ceasefire was called on Wednesday to observe the Muslim end-of-Ramadan holiday of Eid al-Fitr.
taken from http://www.bbc.co.uk/news/world-africa-14744073
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