Around 14 million Libyan dinars was "to be distributed directly to families throughout the Nafusa Mountains during the holy month of Ramadan," the National Transitional Council said in a statement.

"It's the first step of our plan to kick-start the economy and bring back stability to the region," said NTC economic adviser Mazen Ramadan.

Nafusa rebels have not seen wages paid since January, according to the NTC and there is said to be shortages of basic items.

"This will ensure that families can purchase basic commodities and also help families returning to areas that are now safe," said the council.

Officials said the cash had already been delivered, flown in from Benghazi this week in an operation that was kept under wraps for fear the money could be stolen.

Poorly armed and poorly trained rebels in the Berber-dominated Nafusa Mountains have surprised the world in recent months by beating a slow but steady path through the range, toward the plains and Tripoli below.

Copyright AFP (Agence France-Presse), 2011