Heh, no it wouldn't... no time for that kind of thing.
The intercooler will probably add an intolerable level of turbo lag. The 1.6TD was already pretty laggy (compared to the TDIs), adding a bunch of volume to the charge air tract will only make it worse.
On the A1 turbo diesels, the oil cooler is tapped into the two smaller hoses on the backside of the water pump housing. The short straight one that is two different sizes on the ends, and the L or hockey stick shaped one that goes up to the flange on the side of the head (side, meaning, where the injectors are).
The one hose is 068-121-053-P, the other has a choice of two, and it likely depends on what size the nipple on the pump housing is. 068-121-058 or with a C suffix.
There is no coolant going to the turbocharger on those, just like a TDI. Only oil. If you have a water-cooled turbo, you'll have to find some other method to deal with that. You *might* be able to use something from the early 1.8t engine (like an AEB engine code, 1998 Passat, for instance) but I doubt it, since those have the actual BLOCK machined and tapped for coolant feed with banjo bolts.
On the A2 turbo diesel, the one oil cooler hose is the same, but the other is completely different, because that one taps into the crossover steel pipe, that wraps around the engine across the top of the transmission, and THAT is completely different, and it has an allowance to clear the front mount that the A2 has that the A1 does not. Pipe is different at the other end, too.
Of course, if you are not using an actual turbo block, you will have no piston oil jets, so the ability to carry the excess heat from the pistons to the oil, and thus to the coolant via the oil cooler, cannot happen... so even having the oil cooler present may not make much difference other than to get the oil WARMER faster on cold days (which is also good). The turbo pistons are also different... one, they have a slot for oil jet clearance, and two they have a different top to lower the CR a bit.
The injectors are also different.
The pump is different, with the extra enrichment plunger on top so when it goes on boost it gets a bit more fuel (the ECOdiesel version is different yet).
And as with the A1, the A2 turbo has no coolant flowing through it.
It sounds to me like you found a turbocharger, and want to cobble it on to a non-turbo engine. It won't work as easily as you think, and given the awful scarcity of parts (especially solid lifter diesel parts.... still unsure exactly what you are working with here), and the relative ease of getting a Canadian AAZ, I think I'd just get the AAZ.
The AAZ makes 75hp stock, and does it with a lower RPM and less stress than the 1.6L which only makes 68hp stock. It also has the benefit of the larger oil pump and galleries and vacuum pump, all the crankshaft improvements, the better MLS head gasket, better timing belt, and (at least for now) parts are still available. Also, VAG continued to make these in Industrial trim even into the TDI era.
