Libyan leader Muammar Gadaffi is in Rome on his fourth visit to Italy in a year.
Relations between the two countries have been warming steadily since 2008 when Italy agreed to pay $US5 billion in compensation to its former colony.
Colonel Gadaffi will meet Prime Minister Silvio Berlusconi at an equestrian show on Monday.
The BBC reports it is the second anniversary of the signing of agreement. Italy is Libya's largest trading partner.
Most of the funds will be invested in building a new coastal highway to Egypt.
