I think you need to determine;
a) how much of the code is to do with business logic, data(base) manipulation and things like proprietary file structures, mathematical processing etc? This is stuff that might lift largely 'as-is' because it's more likely to be written in 'pascal' with much smaller, obvious elements of OWL/BP7. For instance, when I did this with an application I had a series of units that dealt with loading/saving proprietary files, stuff to calculate easter, stuff to do maths on arrays etc - all of this stuff went from BP7 to Delphi (1) with almost no changes.
b) how much of the code is to do with the GUI (and nothing else) - message loop handlers, dialog element constructors, properities of controls etc. This stuff will take a lot of work to port to Delphi and unless you can find someone with a nice line in .RES->.DFM (or similar), I think you'll be looking at building this bit from scratch. No bad thing because if it's a 16bit Windows app then you'll probably want to take the opportunity to at least make it look a bit more 'modern' anyway. I think this will be the most labour-intensive part of the project.
c) how much of the code is using stuff that you know can be done differently in Delphi, but that would work as it stands in pascal right now? This is where @BloodySmartie's point about migrating to an older version of Delphi makes sense to me. You ought to be able to port that project to something like Delphi 5/7 making obvious (and well-understood) changes to things like string manipulation. The more of this stuff that you can leave unported, the better in my view. Get something that runs and that you check basic behaviour with, and then embark on a process of refactoring/refining to make the most of Delphi as and when the resources allow it. You might have (as I did) arrays of pointers in BP7, where each pointer goes to an array of pointers which ultimately lead to an object - this was how we got around memory limitations in the 16bit Windows world. When I first ported my app, these arrays of pointers to arrays of pointers still worked fine in Delphi and I left them alone until I had the time to do something more 'Delphi-like' with the structures.
But before you do all of that - why are you porting the app? If you're porting it because you're about to make a reasonable number of changes to the app's functionality anyway, then it might really be the right time to rewrite the app. As you're rewriting in Delphi, you are still going to be able to use chunks of functions and procedures that are business-rule based anyway, so it's not necessarily a complete and total rewrite from scratch.