Rebel leaders meet world powers to plot Libya’s future
French President Nicolas Sarkozy and British Prime Minister David Cameron, whose gamble to spearhead the West’s intervention in Libya paid off this week when Gaddafi was driven from power, were hosting delegations from 60 countries and world bodies.
A tight three-hour agenda focused on political and economic reconstruction, with Western powers anxious to avoid mistakes made in Iraq — but talks on the sidelines were expected to expose early jostling for opportunities in sectors like oil, utilities and infrastructure.
French Foreign Minister Alain Juppe said the priority was to help Libya’s National Transitional Council (NTC) with humanitarian needs and restoring water, fuel and power, but he said investment opportunities loomed for a second stage.
“You know this operation in Libya costs a lot. It’s also an investment in the future because a democratic Libya is a country that will develop, offering stability, security and development in the region,” Juppe told RTL radio.
Libya, which boasts large reserves of top-quality crude oil, has been left badly underdeveloped by Gaddafi, who ousted Libya’s King Idris on September 1, 1969.
A rash of flat denials of a French newspaper report yesterday saying the NTC had agreed back in April to give France priority access to 35% of Libyan oil in return for its backing underlined the sensitivity of prospects for investment.
French oil major Total, which was producing 55,000 barrels of crude per day in Libya before the conflict, said it has not yet discussed new investment possibilities there.
“We have only talked about how we can help them restart production as quickly as possible,” Total chief executive Christophe de Margerie told reporters.
He also said he had no knowledge of an alleged preference deal with France for Libyan oil, as reported by the daily Liberation. Diplomatic sources also said the report was false and Juppe said he was unaware of any such deal.
The world’s eyes were on Libya’s interim chairman, Mustafa Abdel Jalil, and interim prime pinister, Mahmoud Jabril, as the “Friends of Libya” conference gave the NTC its first major platform to address the international community a week after its forces overran Tripoli and drove Gaddafi out.
Jalil opened the afternoon talks with an outline of the NTC’s roadmap, which targets a new constitution, elections within 18 months and ways to avoid reprisals.
Eager to meet immediate civilian needs, the NTC is expected to push for rapid access to billions of dollars in foreign-held Libyan assets frozen under UN sanctions on Gaddafi.
The US and Britain have won UN permission to unfreeze $1.5 billion each of Libyan assets and France got approval yesterday to release €1.5bn out of a total of €7.6bn of assets in France.
US Secretary of State, Hillary Clinton, took part in bilateral meetings with the Libyan and Turkish delegations ahead of the talks, which was attended by European and African leaders and the heads of NATO, the UN and EU.
Russia and China, which both opposed the NATO intervention, will also be represented. Symbolically, Russia recognised the interim council as the legitimate authority yesterday and Algeria, which has dragged its heels on the issue, said it would recognise a broad- based government that the interim rulers are hoping to form.
There is also pressure for the IMF to formally recognise Libya’s new leadership, as its stamp of approval is needed for international institutions like the World Bank or African Development Bank to get involved in post-conflict reconstruction. The IMF has said it would need such a move to be supported by its 187 member countries.
While the Paris talks are not supposed to be about funding pledges, some aid or loans may be promised to aid the NTC, which is using money unfrozen earlier in France to buy wheat.
Libyan representatives will remain in Paris today to discuss their reconstruction needs in detail with partners like USAID.
Meanwhile, Muammar Gaddafi warned from hiding yesterday that tribes loyal to him were well-armed and preparing for battle, hours after rebels hoping for a peaceful surrender extended the deadline for loyalist forces to give up in the longtime Libyan leader's hometown.
Gaddafi’s audio statement, broadcast by Syrian-based Al-Rai TV, came as the rebels said they were closing in on the former dictator.
“We won’t surrender again; we are not women, we will keep fighting,” Gaddafi said. His voice was recognisable, and Al-Rai has previously broadcast several statements by Gaddafi and his sons.
Rebels have been hunting Gaddafi since he was forced into hiding after they swept into Tripoli on August 20 and gained control of most of the capital.
