"This accord represents a qualitative leap in relations between the two countries and proves that Libya has transformed its weapons of mass destruction into constructive weapons," Public Works Minister Maatuk Maatuk said at the signing ceremony.

"Libya is reaping the benefit of its decision to get rid of WMDS. We hope this accord will enable us to develop cooperation (with other countries) on peaceful programmes," he added.

"We are telling the world that we are moving towards the development of Libyan nuclear technology for peaceful purposes."

In a dramatic diplomatic move in December 2003, Kadhafi announced that Libya was giving up efforts to build nuclear, chemical and biological weapons after months of secret negotiations with Britain and the United States.

Since then the former pariah state has returned to the international fold and French President Jacques Chirac was among a host of world leaders and top officials to subsequently visit Tripoli.

Libya agreed in January 2004 to pay compensation over the downing in 1989 of a French airliner over Niger although it has never admitted responsibility.