CAIRO -- Japanese Prime Minister Junichiro Koizumi announced a $200 million aid package for Egypt on Saturday, following a summit with President Hosni Mubarak in Cairo.

Most of the cash is to take the form of loans. The conditions are yet to be negotiated but aid is earmarked for projects including a windpower generating station for Mubarak's recession-hit country, Reuters reported.

The remainder is grants-in-aid for a drinking water project over three years, probably starting later this year.

Koizumi is conducting a round of diplomacy that started with a Texas summit with U.S. President George W. Bush on Friday. He will pay a brief visit to Saudi Arabia for talks on Iraqi reconstruction and the Middle East peace process on Sunday before returning to Tokyo.