The organising committee of the 2000 Sydney Olympics (SOCOG) came clean in Seoul yesterday by admitting it faced major problems over contaminated drinking water in the run-up to the games.

But it pledged to tackle the issue urgently after presenting a progress report to the executive board of the International Olympic Committee which is meeting here this week.

The New South Wales (NSW) health department has warned Sydney's three million residents three times in the last two months to boil drinking water due to dangerous levels of parasites.

Michael Knight, the NSW Olympic minister and SOCOG president, told a press conference: "I said to the IOC very clearly `yes there is a problem'. The problem is both a surprise and annoyance, but it's a matter which the government of New South Wales is committed to getting fixed."

Knight said IOC President Juan Antonio Samaranch and his board were "pretty confident" after listening to SOCOG.

IOC executive board member Jacques Rogge, chairman of the co-ordination commission for the Sydney Games, confirmed: "We have asked for an in-depth study of the problem and we will study it at first hand in October.

"But, of course, there is plenty of time, two years time to solve the problem . . . we are optimistic this will be solved."

He said the IOC did not feel there was a need for contingency plans at this stage.

Earlier this month Sydney residents were told they might have to boil drinking water for up to a year because of parasites invading reservoirs.

The organising committee for the 2004 Athens Games also presented their first report to the board.

Rogge said that "as far as the organisation is concerned Athens, with 75 per cent of the venues in place, with the legislation passed, with an organising committee which has been established four months ago, is way ahead of what Atlanta was at this stage."