Local villagers were assisting authorities in efforts to rescue the injured and transport them to hospital after the early morning accident, which occurred at an elevation of 3300m on a narrow road between the cities of Cusco and Paucartambo.
"The bus got disoriented and fell into the deep abyss, leaving 20 dead" and another 27 injured, Cusco traffic police commander Wilber Callapina said.
The commander, who said 60 people were on the bus, blamed the crash on "the uneven terrain and bad road conditions".
Accidents are common on Peru's ill-kept roads.
About 3000 people have died and more than 50,000 have been injured in highway accidents over the past five years, according to the office of the government ombudsman
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