[KamRacing]

good choice in going 16v. Realistically you will have about 175-180bhp with a standard engine and throttlebodies/carbs. I've not seen more than that on realistic rolling roads. There are a few disadvantages to using the Mi16 though and the main one is going to be oil surge. The problem is the large open head design meaning it can hold a lot of oil. The drainage is simply not adequate for very high speed left hand corners.
The sump should work though I would suggest tapping new drainage holes in the back of the head (in the corners) and running additional drainage hoses back to the sump.
Newer heads like on the gti-6 have two separate compartments for the inlet and exhaust valvetrain which eliminated this issue.