Yes the electric motor replaces the starter and alternator! This is one way how to setup a parallel hybrid vehicle. I used to work for GM and this is how they did it on there vehicles. The difference is they used a belt and pulley method and I will link directly to the drive shaft. Linking to the driveshaft is more efficient. This is how the Honda insight is configured they simply replace the flywheel with the electric motor.
The water pump is also electronic check it out =
http://www.daviescraig.com.au/Electr...0-details.aspx
On the turbo design:
My thought was to use a parallel twin turbo setup with an IHI RHB31's. I would assign one turbo to each cylinder bank. This would provide good symmetry and also simplify the plumbing vs a single larger turbo design.
I don't think they make a twin-scroll turbo small enough for the 2 cylinder!