You can fit a 1.6cvh to a type 9 using the standard bellhousing. Don't know about spigot bearings or suitable flywheel/clutch combo thou. Ask on Locosts as a couple of guys have 1.6 Turbo lumps (took some fiddling to get em to work) As for 200bhp......
You can tune the 1.6 turbo to around 175bhp with a few hundred quid. However according to Burton, a 1.6 N/A can go to 135bhp with a new head, cams and twin webers (so around £2000 according to Burton).
If your using a type 9 gearbox, its either a complete dash out of a car that had the same type 9 and diff, so the speedo works. Or more practically, for your building choice, a digital dash, with speedsensor mounted somewhere (wheel / prop)