A lack of public toilets is a chronic problem in Manhattan.

City officials have come up with a solution. Officials are in the midst of a proposal to install as many as 20 public pay toilets in Manhattan, as part of a larger project to replace 330 newsstands and 3,300 bus shelters.

Under the agreement, Cemusa Inc. would install the toilets and other structures for free, and then hope to turn a profit by selling advertising on the kiosks and shelters.

Patrons would pay a fee to use the toilets, which would be in operation by 2007. The city would get a share of the advertising revenue; perhaps $1 billion over 20 years.

New York's transportation commissioner, Iris Weinshall, says the idea's time has come. "We have millions of tourists who come here all the time. Thank God, the city is doing great, and people are out and about. But it is a challenge to find a place to go to the bathroom," she says.