It receives he heat shield on the other end of the manifold (bridges the bottom bolts of cyl1&2. It is right side up but backwards. Yes, it goes between the bolts and the exh manifold.
There is a heat shield that "clips" onto that part.
The exhaust manifold/turbo goes on first. The part in your picture goes over the two bottom exhaust manifold studs closest to the timing belt. Turn the part around, though, so the open end faces away from the engine (the opposite of how it is in your picture). The bottom of the heat shield slides into the open end of the part and the shield is held on with two bolts that go on studs on the mainfold.
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