Analysis: Why did Libya intervene?

Five hostages go free - but another seven remain

By Nick Pelham in North Africa

After three months of negotiations, Libya is preparing to welcome five European hostages released by the Muslim rebel Abu Sayyaf group in the Philippines.

After travelling to Cebu in the Philippines, the hostages - four women and a 57-year-old man - were to board a Libyan jet bound for Tripoli.

Colonel Gaddafi is seeking to end Libya's isolation

Libya denies it has paid a ransom of $1m per head for their release, and says its intervention is purely humanitarian.

It says payments will only be used to support the development of the marginalised Muslim community in the southern Philippines.

There is some criticism in Libya that the Libyan leader, Muammar Gaddafi, is bankrolling an operation on the other side of the globe.

Despite its oil largesse, the republic's own infrastructure is in dire need of development.

But Libyan officials argue the resulting diplomatic goodwill will do much to remove the last obstacles for ending its isolation. So far sanctions have only been suspended, not lifted.

Libya also wants to see a speedy end to the Lockerbie trial

Tripoli also wants a speedy end to the trial two Libyans in the Hague accused of blowing up an American jet over Lockerbie.

Seven hostages remain in captivity, but this latest release is a vindication of Libya's 15-week long mediation.

Its negotiators have drawn on Libya's long-standing ties with the Abu Sayyaf hostage-takers, dating back to the days when Libya sponsored Muslim rebels worldwide.

But new winds are blowing in Libya and its leadership is now seeking to boost its image as a saviour from terrorism, not its sponsor.