A $12.3 MILLION contract has been awarded to a local company for construction of long-awaited extension of Kirkwood Rd with on and off ramps from the Pacific Highway.

The project is aimed at alleviating traffic congestion on Minjungbal Dr as well as improving access to many businesses in Tweed Heads South which blamed the congestion for making business more difficult.

However the cost will almost break the council bank account set aside for such roadworks with Engineering Director Patrick Knight telling councillors this week it "will empty the bucket".

The work is to be funded from the Tweed Roads Contribution Plan which consists of funds paid in by developers and has a balance of $11,032,775.

The council's allocation towards the project is $10,670,390 with the NSW Roads and Traffic Authority also contributing.

"Our share of funding is coming totally from developer contributions," Mr Knight said.

"The problem is it will certainly empty the bucket. We can do this particular project but the coffers are bare."

Only Greens Party councillors Katie Milne opposed the letting of the tender for the work after hearing Mr Knight's explanation and arguing "the whole thing seems to be totally unsustainable".

SEE Civic Pty Ltd, formerly South East Excavations, were awarded the contract ahead of four other tenderers.

The Tweed Heads-based company was established in 1988 by brothers Brian and Bruce Turner.

Mr Knight assured councillors that concerns, expressed last week that 180 permanent residents plus tourists at the award-winning Billabong Caravan Park would be affected by noise because planned sound barriers would be lower than those existing on the highway, would be addressed.

"I can publicly give this undertaking that we are negotiating and.. will reach a satisfactory result on that," Mr Knight said.

In a further report to the councillors he revealed that the "possibility of a court injunction" relating to the height of the planned new sound walls had been raised "but it is expected to be avoided through the ongoing negotiations".