The Cambodian government plans to privatize the rubber plantations with the help of Asian Development Bank (ADB) amid skyrockteting rubber prices, local media reported on Wednesday.

The Ministry of Agriculture is working with the ADB to sell off its seven rubber plantations by mid-2007, which were located in Kompong Cham and Kratie provinces, The Cambodia Daily quoted the ministry's Rubber Department Director Ly Phalla as saying.

"This plan will help the government handle (the problem of) having too many state rubber workers," he said.

ADB project manager Masahiro Otsuka said the privatization effort is part of a 25 million U.S. dollar ADB project.

"The government recognizes a large potential for increased national benefits from divestment of state-owned enterprises through increased gains from, for instance, rapid increases in natural rubber prices," he said.

This year, the price of rubber on international markets has increased 55 percent and is expected to continue to rise due to high demand, the newspaper said.

Source: Xinhua