World powers attending a Paris conference are planning a course of action for Libya's future that includes pledges to free up billions of dollars in frozen assets to help the country's provisional authority.

U.N. chief Ban Ki-moon told the gathering that Libya's public services are under severe strain, while sporadic fighting continues in some parts of the country. He said preparations are underway to effectively coordinate humanitarian aid and to provide assistance to Libyans in a timely manner.

U.S. Secretary of State Hillary Clinton told delegates that the U.N. should move to ease restrictions on Libyan assets. She also said the United States has transferred $700 million of the $1.5 billion in assets that were unfrozen for Libya last week.

The U.S., the Netherlands and France have vowed to unfreeze nearly $5 billion in funds withheld from Moammar Gadhafi's government as it fought rebels seeking to end his 42-year rule.

Also Thursday, the European Union announced it was lifting sanctions on 28 Libyan entities, including ports, banks and energy companies.

Representatives from 60 nations and Libya's National Transitional Authority are attending the Paris talks on a Libya without ex-leader Gadhafi.

Later in the night, NTC leader Mustafa Abdel Jalil was expected to outline an 18-month process leading to a new constitution and elections.

Meanwhile, Mr. Gadhafi delivered a defiant message from an undisclosed location. He said his forces would not surrender and would ultimately be rewarded with victory. His audio statement was carried by Arabic television stations.

Libya's provisional authorities on Thursday gave pro-Gadhafi fighters in his hometown of Sirte an additional week to surrender. The NTC originally set a Saturday deadline and said it would resort to military action if the deadline was not met. But NTC officials said there has been progress in negotiations with holdouts in Sirte.