By Carlos Rodriguez, The Associated Press

GUADALAJARA, Mexico - Organizers of the 2011 Pan American Games in Guadalajara have been given two weeks to come up with a guarantee to pay US$50 million if the Mexican city fails to deliver on its promise to host the Games.

Mario Vazquez Rana, the president of the Pam Am Sports Organization, said Thursday the Games faced a condition "red."

"A lack of confidence is increasing," Rana said, speaking at the body's general assembly in Guadalajara. "We have to continue knowing we are on red - every day, every hour. We have to watch hour by hour, day by day and week by week."

The Pan Am Sports Organization, which oversees the Games, asked local organizers for the $50 million guarantee several weeks ago when it became clear they were behind schedule building a stadium for athletics, an aquatic centre and an athletes' village.

The problems surrounding the 2011 Games have taken some of the focus off Friday's announcement of the venue for the 2015 games. Toronto, Lima and Bogota are bidding for those Games, with Toronto and Bogota considered the favourites.

"The guarantee we asked for, to cover problems that might come up, was to be handed over today," Rana explained. "It has not happened because of paperwork that is taking longer than expected.

"We are giving them 10 working days to come up with the guarantee."

Rana said local organizers needed to hand over the guarantee by Nov. 20.

"Once we have the guarantee we'll let you know, and if not we'll have to figure out what to do," Rana added.

Rana did not spell out contingency plans if Guadalajara fails to deliver the games. However, in recent weeks he has suggested Toronto might be prepared to step in.

The Pan Am Games are expected to draw about 7,000 athletes and officials and are held every four years.

"If they (organizers) fail, we'll cash the $50 million," Rana said. "The money is not important. What is important is the Games. We're doing this to put a little pressure on them."