A $12.3 million contract has been awarded to a local company for construction of the 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 contributing further funds.

"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, was 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 concerns, expressed last week that 180 permanent residents plus tourists at the award-winning Billabong Caravan Park would be affected by noise, would be addressed.